Technical Analysis:
The EUR/USD pair recently tested the support level around 1.0375, reflecting renewed selling pressures. This movement threatens the previously established upward channel, suggesting potential for further declines if the pair sustains levels below 1.0360. Key support is identified at 1.0280, while resistance lies at 1.0550.
Fundamental Factors:
• Geopolitical Developments: European leaders have initiated a renewed push for peace in Ukraine, agreeing to present a peace plan to Washington. This initiative has contributed to the euro's rebound from recent lows against the U.S. dollar.
• Trade Policies: The potential for a Europe-US trade war poses a risk to the euro, with analysts suggesting that such tensions could push the euro toward parity with the dollar.
• Central Bank Actions: The European Central Bank (ECB) is anticipated to cut interest rates by 25 basis points, bringing the rate to 2.50%. This decision aligns with expectations of easing monetary policy amid persistent inflation concerns.